Eric Sprott: Bail Ins, Physical Demand for Gold and Silver: Video

Eric Sprott: Bail-Ins, Physical Demand for Gold and Silver

Eric Sprott: Bail-Ins, Physical Demand for Gold and Silver

In this video Greg Hunter of USA Watchdog interviews Eric Sprott the President and CEO of Sprott Asset Management. Eric says extreme physical demand for gold and silver is draining supplies. Eric talks about Bail-Ins. At first it was only Cyprus but now it has become a template for other governments around the world. In a bail in the bank depositors are now considered creditors so when a bank fails the bank, instead of looking to shareholders, bank management, or governments to bail them out they look to internal sources.

I don’ think anyone that deposits money in a bank considers that their deposit might be seized to satisfy banks debts. Most people, when they deposit money in the bank, feel that is the safest place for it but the bail-in concept as used in Cyyprus and the Cyprus bail-in model being used as a template by governments around the world no longer make that certain.

From financecareers.com’s definition page on bail-in:

Bank Depositors Tapped in Cyprus

“Bank Depositors Tapped in Cyprus: Few, if any, critics of bank bailouts recognize the logical conclusion of their stance, that depositors will have to suffer part, if not all, of the losses. The financial markets were roiled in mid-March 2013 by a proposed bailout of banks in Cyprus that actually was structured largely as a bail-in funded by depositors.” Click Here to Read Full Story – Bail-In. (Bolding mine for emphasis)

From the Huffington Post:

“Rather than reining in the massive and risky derivatives casino, the new rules prioritize the payment of banks’ derivatives obligations to each other, ahead of everyone else. That includes not only depositors, public and private, but the pension funds that are the target market for the latest bail-in play, called “bail-inable” bonds.

“Bail in” has been sold as avoiding future government bailouts and eliminating too big to fail (TBTF). But it actually institutionalizes TBTF, since the big banks are kept in business by expropriating the funds of their creditors.

It is a neat solution for bankers and politicians, who don’t want to have to deal with another messy banking crisis and are happy to see it disposed of by statute. But a bail-in could have worse consequences than a bailout for the public. If your taxes go up, you will probably still be able to pay the bills. If your bank account or pension gets wiped out, you could wind up in the street or sharing food with your pets.” Click Here to Read Full Story- Bail-In Huffington Post. (Bolding of sections in this quote are mine for emphasis.)

Eric says, “that when it becomes apparent to people that having deposits in a bank is a risk that will have a dramatic effect on the precious metals.”

In the US FDIC deposit insurance fund is now up to 33 billion insuring 10.8 Trillion dollars of risk. That’s like having $33 insuring 10,800 of risk. No insurance commissioner anywhere would approve that

The FDIC cannot support all of the liabilities they have.

Eric says that the physical demand is unbelievable and that we have much, much better days ahead for the precious metals.

Sprott predicts, “Somebody’s going to fail here. All the data I look at says the Western central banks . . . that have been selling gold are running on fumes now . . . so, it’s very close at hand.” Join Greg Hunter or USAWatchdog.com as he goes One-on-One with money manager Eric Sprott of Sprott Asset Management.
Video Rating: 4 / 5